Consumer concern over online privacy up by half

But transparent businesses can help improve customer loyalty

Consumer concern about online privacy is growing, with 94 percent of consumers worried about it and 54 percent more concerned than a year ago, according to research.

The research suggests the impact on businesses could be significant with consumers engaging less with companies they don't trust, but there is also evidence that transparency can improve customer loyalty to other companies.

The TRUSTe 2012 UK Consumer Data Privacy Study was conducted online among over 1,000 adults by Harris Interactive, just after the enforcement of the EU cookie directive began.

The survey found:

27 percent of consumers are more concerned with mobile privacy than website privacy

Consumers engage less with companies they do not trust - leading to lower purchases (29 percent), app downloads (68 percent) and sharing of information (86 percent)

Consumers believe advertisers, publishers and ad networks are all responsible for safeguarding their privacy, but trust themselves most

TRUSTe's research also shows that transparency is key if businesses are to address these concerns. For example, 79 percent of consumers are aware of online behavioural advertising (OBA), 53 percent do not like it, and 42 percent believe that personally identifiable information (PII) is attached to tracking activity.

However favourability towards this kind of advertising almost doubles when consumers are assured that any data that could identify them personally is not used.

Consumers also reward companies for good privacy practices, with 51 percent more inclined to click on an advertisement that gives them the option to opt out of online behavioural advertising, and 55 percent are more inclined to do business with publishers and advertisers that give them the option to opt-out.

Chris Babel, CEO at TRUSTe, a company which sells online privacy management systems to organisations, said: "The recent EU cookie directive has put third party tracking and online behavioural advertising under the spotlight in the UK, and has forced advertisers, publishers and brands to consider their data privacy practices and how they communicate these to their consumers."

According to research published by KPMG last month the EU cookie law has so far been largely ignored by UK institutions, despite the risk of being fined. Cookies are small text files which are used by websites to analyse their visitors' internet behaviour. The files are stored on a user's hard disk to enable targeted advertising and personalised web pages.

Join the CSO newsletter!

Error: Please check your email address.
Show Comments

Featured Whitepapers

Editor's Recommendations

Solution Centres

Stories by Antony Savvas

Latest Videos

  • 150x50

    CSO Webinar: The Human Factor - Your people are your biggest security weakness

    ​Speakers: David Lacey, Researcher and former CISO Royal Mail David Turner - Global Risk Management Expert Mark Guntrip - Group Manager, Email Protection, Proofpoint

    Play Video

  • 150x50

    CSO Webinar: Current ransomware defences are failing – but machine learning can drive a more proactive solution

    Speakers • Ty Miller, Director, Threat Intelligence • Mark Gregory, Leader, Network Engineering Research Group, RMIT • Jeff Lanza, Retired FBI Agent (USA) • Andy Solterbeck, VP Asia Pacific, Cylance • David Braue, CSO MC/Moderator What to expect: ​Hear from industry experts on the local and global ransomware threat landscape. Explore a new approach to dealing with ransomware using machine-learning techniques and by thinking about the problem in a fundamentally different way. Apply techniques for gathering insight into ransomware behaviour and find out what elements must go into a truly effective ransomware defence. Get a first-hand look at how ransomware actually works in practice, and how machine-learning techniques can pick up on its activities long before your employees do.

    Play Video

  • 150x50

    CSO Webinar: Get real about metadata to avoid a false sense of security

    Speakers: • Anthony Caruana – CSO MC and moderator • Ian Farquhar, Worldwide Virtual Security Team Lead, Gigamon • John Lindsay, Former CTO, iiNet • Skeeve Stevens, Futurist, Future Sumo • David Vaile - Vice chair of APF, Co-Convenor of the Cyberspace Law And Policy Community, UNSW Law Faculty This webinar covers: - A 101 on metadata - what it is and how to use it - Insight into a typical attack, what happens and what we would find when looking into the metadata - How to collect metadata, use this to detect attacks and get greater insight into how you can use this to protect your organisation - Learn how much raw data and metadata to retain and how long for - Get a reality check on how you're using your metadata and if this is enough to secure your organisation

    Play Video

  • 150x50

    CSO Webinar: How banking trojans work and how you can stop them

    CSO Webinar: How banking trojans work and how you can stop them Featuring: • John Baird, Director of Global Technology Production, Deutsche Bank • Samantha Macleod, GM Cyber Security, ME Bank • Sherrod DeGrippo, Director of Emerging Threats, Proofpoint (USA)

    Play Video

  • 150x50

    IDG Live Webinar:The right collaboration strategy will help your business take flight

    Speakers - Mike Harris, Engineering Services Manager, Jetstar - Christopher Johnson, IT Director APAC, 20th Century Fox - Brent Maxwell, Director of Information Systems, THE ICONIC - IDG MC/Moderator Anthony Caruana

    Play Video

More videos

Blog Posts